Supply chain and risk management: Making the right risk decisions

This global survey in conjunction with MIT analyses the supply chain operations and risk management approaches of global footprint companies, and looks at their operations and financial performance in the face of supply chain disruptions.

It proposes a framework and a set of principles to help companies manage today’s risk challenges, prepare for future opportunities, and to gain awareness of where a company – and its competitors – stand.

Key messages

The Survey’s findings validate five key principles that companies can learn from to better manage today’s risk challenges to their supply chains and prepare for future opportunities:

• Supply chain disruptions have a significant impact on company business and financial performance.
• Companies with mature supply chain and risk management processes are more resilient to disruptions than those with immature processes.
• Mature companies that invest in supply chain flexibility are more resilient to disruptions than mature companies that don’t.
• Mature companies that invest in risk segmentation are more resilient to disruptions than mature companies that don’t.
• Companies with mature capabilities in supply chain management and risk management do better along all surveyed dimensions of operational and financial performance than immature companies.

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